Nike Earnings: Signs of a Comeback but Finish Line Remains Distant; Shares Very Attractive

Nike overcame a 9% sales decline in Greater China (13% of total) to post 1% growth in fiscal 2026's first quarter. Its gross margin fell 320 basis points to 42.2% due to higher markdowns and tariffs, and led to an EBIT margin that declined to 7.7% from 10.9% despite a 1% cut in operating costs.